The average U.S. home price has hit a new record, rising 6.6% annually and overtaking the previous peak in 2006, new data suggests.
The average value in January 2018 was 1.1% higher than it was in 2006, according to data specialist, CoreLogic.
In the third quarter of 2017, the average year-over-year home equity gain was $14,888. Florida was among the top 25 best-performing states.
The average U.S. home price is set to rise 4.8% in 2018.
The Evaluating the Housing Market Since the Great Recession report reviews the 11-years following the last U.S. housing market downturn. It looks at the boom and bust years between 2006 and 2011 and the recovery up until December 2017.
Residential home prices began to peak in some parts of the country as early as 2005, according to the report. Home prices collapsed in 2007, when Wall Street began to back out of residential mortgage-backed securities. After falling 33% during the recession, prices in most markets have returned to peak levels. They have grown 51% nationally since bottoming out in March 2011.
Boost in home prices
Dr. Frank Nothaft, chief economist for CoreLogic, explains, “Homeowners in the United States experienced a run-up in prices from the early 2000s to 2006, and then saw the trend reverse with steady declines through 2011.
“After reaching bottom in 2011, our national price index is up more than 50 per cent.
“Greater demand and lower supply – as well as booming job markets – have given some of the hardest-hit housing markets a boost in home prices.”
Local job market dynamics and other factors helped determine the severity of the housing downturn at the regional level.
National home prices increased 6.6% year over year in January 2018. In addition, they are forecast to increase 4.8% from January 2018 to January 2019. Further, an analysis of the market by price tiers indicates that lower-priced homes experienced significantly higher gains, according to the latest CoreLogic Home Price Index (HPI) Report.
CoreLogic analyzes four individual home-price tiers using the median national home sale price. The lowest price tier increased 9% year over year, compared with 8.2% for the low- to middle-price tier, 6.9% for the middle- to moderate-price tier, and 5.3% for the high-price tier.
The overall HPI (all price tiers combined) has increased on a year-over-year basis every month since February 2012 and has gained 51.3% since hitting bottom in March 2011.